Evaluating the Global Social Performance Generated Locally by Saipem's Sustainable Business Strategy
- Emmanuelle Charlot-Clarisse (Saipem spa) | Pierluigi Nunzi (Saipem spa)
- Document ID
- Society of Petroleum Engineers
- SPE International Conference and Exhibition on Health, Safety, Security, Environment, and Social Responsibility, 16-18 April, Abu Dhabi, UAE
- Publication Date
- Document Type
- Conference Paper
- 2018. Society of Petroleum Engineers
- 6.1.5 Human Resources, Competence and Training, 6.6 Sustainability/Social Responsibility, 6.6 Sustainability/Social Responsibility, 6 Health, Safety, Security, Environment and Social Responsibility, 6.1 HSSE & Social Responsibility Management
- Local Content, Social performance, Employment, Human Capital Development
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(previously submitted to the Conference organizers)
Evaluating the Global Social Performance generated by Saipem's sustainable business strategy:
The approach of measuring the global performance in the field of sustainability introduces a step change in Local Content measurement framework that can be challenging for all oil and gas actors. The objective was to find an innovative method. Actually, traditional methods used to evaluate Local Content in quantitative terms calculate only the direct components connected to operations (direct local employment and direct local purchasing) and underestimate the overall real impact and the potential socio-economic benefits of Local Content.
Methods, Procedures, Process: As global impact goes beyond direct effect, Saipem developed its own methodology, the Saipem Externalities Local Content Evaluation (SELCE) methodology, which allows to quantify the global socio-economic footprint generated through a multiplier effect. The SELCE measures the economic impact, the local employment impact and the Human Capital development impact by calculating the direct (directly linked to Saipem activities), indirect (created by Saipem activities along the supply chain) and induced effects (generated in the local economy) of Saipem activities. The SELCE allows to quantify the added value generated in the local economy in terms of GDP contribution percentage.
Results, Observations, Conclusions: The creation of local employment and the development of local skills within Saipem fabrication yards, the know-how transfer between expatriates and local employees and the development of the local supply chain (by the collaboration with local suppliers and subcontractors), generate socio-economic value for the host communities of Saipem yards, and contribute to social stability and wellbeing of the local population. Investing in training, know-how transfer, suppliers and subcontractors scouting and active cooperation is fundamental for the success of Saipem projects in target countries such as Nigeria, Angola, Congo, Brazil and Indonesia. The SELCE methodology is a realistic methodology to evaluate Saipem global social performance as local employment and human capital development impacts are two key indicators. The result of this methodology shows that the total impact on Human capital development represents at least two times the direct input and the total impact on local employment is generally more than three times the direct input.
Novel/Additive Information: This approach of measuring the global performance by introducing the externality economic model can be considered as an innovative approach in the field of sustainability in a long term vision.
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